In 2017 the VED rate was changed to be based on the amount of CO2 emissions a vehicle produces and there was even a ‘premium’ introduced for cars costing over £40,000 – even if they car is all-electric and doesn’t produce any emissions.

Nicholas Lyes, RAC head of roads policy, said: “The announcement that the Chancellor will look at the possibility of reducing VED for businesses that buy cleaner vans is very welcome and we look forward to seeing more detail on this.”